A New Economics for a New Economy [David Korten] pt. 1

A New Economics for a New Economy A life serving New Economy requires the support of a science and values based New Economics to provide the institutional models and policy tools essential to implementation. Thursday, May 30, 2013 from 2:00 -- 4:00 PM ET (11-1:00pm PT) New Economy Transition Webinar Series Co-Sponsored by the New Economy Working Group and the New Economics Institute Physical Location: The Institute for Policy Studies 1112 16th St. NW, Suite 600 (at 16th and L St) (See instructions below for remote participation) In a recent public forum at Union Theological Seminary organized by the Institute for New Economic Thinking, Nobel Laureate Economist Joseph Stiglitz referred to economics as a faith based religion. With support of the New Economics Foundation, university students across the United States and Canada are organizing to challenge the intellectual legitimacy and relevance of conventional economics courses. Contextual and Ecological Economics are among several sub-disciplines that are challenging the old paradigm of financial economics (aka neoliberal or market fundamentalist economics). It has long been evident to some that the economic theories most solidly entrenched in academic and policy circles lack scientific and moral foundation and bear major responsibility for an economic system that self-organizes toward economic instability, extreme inequality, environmental destruction, and political corruption. The intellectual fallacies include, but go far beyond, the assumption of infinite growth on a finite planet. To date, however, the powerful interests served by these theories have easily deflected criticism, in part because there is no recognized alternative set of theories and tools to guide economic teaching and policymaking. There are signs of a public readiness to demand a serious re-thinking and re-tooling as the failures of existing theory and practice become increasingly evident. This NET session will explore the following questions. Is this a moment of opportunity to expose financial economics as a failed faith based ideology posing as a science? What are the most promising openings and compelling arguments for serious change? What would be the essential characteristics of a life-serving new economics paradigm grounded in scientific fact and perennial moral principles? What are the critical barriers to its development and how might we overcome those barriers? As one example, where has ecological economics gone wrong in its effort to provide a viable alternative? What are the lessons from this experience for those who now seek to create a true new paradigm economics?